Sluggish Exports, Rain Damage Push Nashik Onion Farmers Into Financial Crisis

Summer onion received an average price of Rs 1200 per quintal at the Lasalgaon Agricultural Produce Market Committee. The time has come for farmers to sell the summer onion stored in March and April at a price lower than the cost of production, even after five to six months, with the expectation of getting a satisfactory price.

For farmers in the district, the rains have hit onions badly, which is a cash crop, causing huge losses to other farm products, including onions. Thousands of hectares of agriculture have also been hit by this drought, and farmers are in a financial crisis. Farmers are facing a double crisis of falling prices on the eve of Diwali and the reduced quality of onions due to the rains.

Farmers have suffered large-scale damage to their onion crop due to the return rains. The return rains have also damaged the onion crop of farmers. The farmers who have stored onions in their fields are also afraid that the onions will spoil due to the natural environment. 

Due to the high production of onions in the Rabi season this year and the slowdown in exports to some extent, the stock of onions in the domestic markets has increased significantly. As a result, the market committees in Nashik district are getting onion prices of only Rs 1200 to 1500 per quintal, which is even lower than the cost of production.

Despite the bumper production of onions this season, due to the sluggish trend of onion exports, 4.69 lakh metric tons of onions have been exported from April 25 to July 25, earning foreign exchange of Rs 1038 crore.

Suvarna Jagtap, Director Lasalgaon Market Committee, said, “Onion exports from India to America and European countries were very low. Farmers need to be encouraged to export to these countries. For this, white and sweet-tasting onions suitable for export should be cultivated, and the seeds required for it should be provided free of cost to the farmers.” 

“This will enable farmers to produce onions of international quality and increase exports in the future, which will add to the country's foreign exchange. Jagtap mentioned that the government should take a positive decision in this regard immediately,” added Jagtap.

Vikas Singh, Vice President, Horticulture Producers Exporters Association, Nashik, said, “Currently, the exemption rate on duties and taxes on exported products applicable to onion exports is only 1.9%. However, if the government increases this rate to 5%, Indian onion exporters will be able to compete more effectively in the global market.”

“Farmers are facing a financial crisis due to the return of rains. The government needs to provide immediate assistance to the farmers. For this, farmers need to be compensated immediately, said Nivrutti Nyaharkar, a farmer from Vahegaon Sal.